Post Office's special scheme allows you to deposit ₹40 lakh from home; risk is also zero
If you want to save a small amount every month to build a large and secure fund for the future, a special post office scheme may be useful for you. Low risk, tax-free returns, and a government guarantee make it unique. With proper planning, investing in it can amass lakhs of rupees.
The Public Provident Fund (PPF) is a government-backed savings scheme that ensures complete security and is not affected by market fluctuations. This is why it is preferred for retirement planning and long-term savings. Its returns are stable and reliable.
The government currently offers 7.1% annual interest on PPF, which is completely tax-free. This scheme falls under the EEE category, meaning that investment, interest, and maturity are tax-free. Additionally, tax exemptions of up to ₹1.5 lakh are available under Section 80C.
If you invest a maximum of ₹1.5 lakh in PPF each year, this amounts to approximately ₹12,500 per month. With regular investments for 15 years, your total deposit will be ₹22.5 lakh. After adding interest, this amount could grow to over ₹40 lakh.
PPF not only provides investment but also helps in times of need. You can take out a loan against the account after a few years of opening.
Furthermore, partial withdrawals are also available after five years. This means the money doesn't remain locked up and is useful when needed.
Investment
Post Office